Economics · Corporate Governance and Audit Committees

Which of the following summaries correctly identifies the true and false statements regarding the role and composition of a corporate audit committee? 1. The audit committee should be composed entirely of independent non-executive directors. 2. The audit committee formally appoints the external auditors at the Annual General Meeting (AGM). 3. The audit committee monitors and reviews the effectiveness of the internal audit function. 4. The audit committee independently sets out the absolute scope of the external auditor's statutory work.